Indonesia Tightens Crypto Rules: Only Locals Allowed on the Board
It’s a new era for crypto exchanges in Jakarta. The Trade Ministry is rolling out a fresh set of regulations that all want a lot of local flavor. Any crypto exchange that wants a license must have at least two-thirds of its board and commissioners made up of Indonesian citizens who are actually living in the country. No funny business.
Why the Rules? The Zipmex Fiasco
The move was sparked by Zipmex’s hiccupped attempt to let users pull out their funds—an incident that made headlines and shook the market. Deputy trade minister Jerry Sambuaga admitted the ministry wants to be selective and give permits only to exchanges that prove they’re credible and compliant.
What Bureau Will Kick It Into Action?
The Commodity Futures Trading Regulatory Agency, or Bappebti, is set to draft the definitive rulebook soon—though the exact launch date remains hush‑hush. Investors can expect tougher standards.
Extra Safeguards
- Crypto platforms must outsource client funds to a third‑party custodian.
- They’re forbidden from investing those stored assets themselves, keeping the assets separate from business ventures.
“Keeping two‑thirds of the board local should stop top executives running off when trouble hits,” Didid Noordiatmoko, Bappebti’s acting head, told a parliamentary hearing.
Future Plans: An Indonesian Crypto Exchange
In addition, Sambuaga hinted that Indonesia might open its own crypto bourse—a plan that was postponed last year but is hoped to launch this year.
Crypto’s Popularity Is Booming
According to Bappebti’s data, Indonesia’s total crypto transaction volume surged by more than 1,000% in 2021, reaching 859.4 trillion rupiah (about S$81 billion). The country’s appetite for digital assets is unmistakably growing.
